Understanding Mixed-Use Property SDLT Rules

If you're buying a property that includes both residential and commercial elements - such as a flat above a shop, or a house with adjoining land - you may not fall under standard residential Stamp Duty Land Tax (SDLT) rules.

These types of purchases are often considered “mixed-use”, and the way they’re taxed can be quite different. However, many buyers overpay SDLT simply because the classification was applied incorrectly.

In this article, we explain the basics and why it’s crucial to have your purchase reviewed by a Stamp Duty expert like SCA Tax.

What Does “Mixed-Use” Mean?

A mixed-use property is one that combines residential and non-residential elements. While this might sound straightforward, determining whether a property qualifies isn’t always clear-cut, and that’s where mistakes are made.

We frequently see examples of mixed-use properties being incorrectly reported as fully residential, resulting in buyers paying thousands more than necessary in SDLT.

Why the Classification Matters

The type of property you're buying affects which SDLT rates and rules apply. In some cases, mixed-use properties are taxed differently than standard residential properties, and may not be subject to certain surcharges.

But here’s the issue: this relief isn’t always obvious, and it's rarely flagged during the conveyancing process. That’s why many eligible buyers don’t realise they’ve overpaid until it's too late - unless they seek expert advice.

Have You Overpaid?

If you’ve recently bought a property that includes land, commercial units, or non-residential space - even in part - it may qualify as mixed-use. If the correct classification wasn’t applied, you might be due a refund.

At SCA Tax, we offer free reviews to assess whether the right SDLT treatment was applied to your purchase. If we identify an issue, we can act on your behalf to reclaim any overpaid tax directly from HMRC.

Thinking About Buying a Mixed-Use Property?

We also help buyers before they complete. If you’re purchasing a property and suspect it may have mixed-use characteristics, we can review the deal ahead of time and advise on the correct SDLT treatment. That way, you won’t pay more than necessary at the point of completion.

How SCA Tax Can Help

We specialise in identifying SDLT savings and reliefs - particularly in cases where mixed-use rules have been misunderstood or misapplied.

With us, you get:

• A free eligibility check
• Expert analysis of your SDLT position
• End-to-end refund claim support
• No-win, no-fee service

Our team has successfully recovered millions in overpaid SDLT for clients across the UK.

Get Your Free SDLT Review

Unsure whether your property qualifies as mixed-use? Recently completed a purchase and think you may have overpaid?

Let our experts take a look. It costs nothing to check, but it could save you thousands.

Start your free assessment here.